Grab attention in 2012 with a compelling offer

For two days in November, one of our clients advertised on one television station in one market.  It was a single message than ran over an eight-hour span for two days.  One ad.  One television station.  Two days.  The response:  154 phone calls.

Was it a creative ad?  Something really clever?  No, it was a simple ad that contained a compelling offer.

The American consumer has developed what I’m calling a GroupOn mentality.  He waits until a deal comes along.  When it does—when he sees or hears a compelling offer—he is prone to pull the trigger.  Something really unusual is happening in the restaurant industry right now: Restaurants are offering deals.  In the weeks before and after Christmas, they typically shy away from special offers because they don't need them to drive traffic.  Not this year. 

The GroupOn mentality has been around for more than a decade and long before anyone had heard of digital coupon companies.  My opinion is that it began in the fall of 2001.  Following 9/11, sales of new vehicles plummeted because consumers stopped spending.   Automakers began offering incentives like 72-month no interest financing.  They created compelling offers—and consumers responded.

Four years ago, the Great Recession plowed into our lives and consumers again shut down spending.  Enter the digital coupons with their deep discounts—their compelling offers.  Consumers couldn’t resist discounts of 50 percent and more.     

As the economy continues to struggle, is that the answer?  Digital coupons that offer deep discounts?   I don’t think so.  Many retailers are discovering that offering products and services at 50 percent off is business suicide.  After they have paid the coupon company, retailers make 25 cents on the dollar in that scenario.  See more about the dangers of deep discounting on my July 31, 2011 entry on this blog. 

Digital coupons do provide a clue about what works today with American consumers today.  It is the compelling offer.  They are looking for more than value.  They want an offer that makes them think “wow.” 

As we step into 2012, what are your plans to reach today’s consumer?  You do not have to give away the store.  Think creatively about offers that will get noticed.  Or call me and let’s brainstorm some compelling offers for your company. 

Best wishes for a great 2012.